CoCo S.A. are considering putting money into one of two investments, A and B. The net profits for identical periods and probabilities of success for investments A and B are given in Table 3.15.

(a) Which investment yields a higher net profit?

(b) Can you make a decision on which investment is better, given this extra information?

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Table 3.15 Net profits, £ 8000 9000 10,000 11,000 12,000 A 0.0 0.3 0.4 0.3 0.0 Probability of Return B 0.1 0.2 0.4 0.2 0.1